Aussies 'should increase their mortgage and cut up credit cards'

Debt-burdened Australians should refinance their mortgage rather than run up high bills on credit cards, a commentator has argued.

Mark Carnegie, a columnist for Business Spectator, claimed that the average Australian will spend a year of his or her life working just to pay off the interest on their credit card.

He urged people to compare home loans and move money around in order to avoid such mounting card debts.

"Way too many Australians don’t understand that the best financial decision they can make is to increase the mortgage on their house, pay off their Visa card and then cut it up never to be used again," said Mr Carnegie.

He added that Australians are addicted to credit card spending, and pointed to the record $47 billion in account balances that was recorded at Christmas as proof.

Meanwhile, the latest Commonwealth Bank Business Sales Indicator revealed that debit and credit card holders were particularly active in March as Australian retail sales increased strongly over the month.

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